Long Sesa Goa

Its been a while since I last looked at Indian markets. Came across an excellent set up for Sesa Goa.
There are some extremely positive technical developments for Sesa Goa Bulls.




DAILY CHART SIGNALS:
1) Breakout above the downtrending resistance line
2) Bullish Slow%D Stochastic divergence
3) Breakout and close above the 308 resistance level which was tested thrice in the recent past


***For points 1 and 3, I would like to see an open and close above the trend lines. We already have an open, but will have to wait and see if Sesa Goa closes above them today (December 27, 2010). If so, then I would look for an immediate entry given that price did not run away too much from these levels. If price closes way beyond these levels, then would wait for a swing low prior to making an entry.


**Would suggest an SL at 277 because it looks like a descending triangle. So, if the bullish price action does not gain momentum from here, then beware.


--Sanjeet Parab
http://www.technicalanalysisbase.com/